German landlord TAG swings to loss amid property crisis (updated)

LEG Immobilien SE

12/03/2024 06:26

(Updates with dividend in paragraph 2, writedowns in paragraph
4, quote in paragraph 5, LEG in paragraph 6)
       FRANKFURT, March 12 (Reuters) - TAG Immobilien
 TEGG.DE , one of Germany's biggest listed landlords, swung to a
$449 million loss in 2023 as Europe's largest economy goes
through its worst real-estate crisis in decades, figures on
Tuesday showed.
    The loss followed further writedowns in the value of its
property holdings, and the company also announced it would again
suspend its dividend for 2023 to strengthen capital.
    Its loss for the year was 410.9 million euros ($449.4
million), compared with profit of 117.3 million euros in 2022. 
    TAG said that it had written down its portfolio by 4.1% in
the second half of the year, after a 7.4% decrease in the first
half and bringing values down 16% from their peak in mid-2022.
        "The very significant part of the value adjustments
should now be behind us," said Martin Thiel, TAG's finance chief
and co-chief executive officer.
  
        On Monday, TAG's larger competitor LEG Immobilien
 LEGn.DE   also reported a full-year loss after writedowns but
said the "peak of the real estate crisis is behind us".
    
($1 = 0.9144 euros)

 (Reporting by Tom Sims; editing by Bartosz Dabrowski)
 ((Tom.Sims@thomsonreuters.com; +49 30 220 133 645;))